The Secret To Controlling Your Fuel Management Costs
One of the biggest concerns for any business, no matter what the industry, is unstable fuel costs. The price of fuel fluctuates at a moment’s notice and may vary greatly across different regions. If your business operates a fleet, you see the large swings in fuel prices happen all the time. A variation of just half a cent per gallon can wreck your budget when it comes to bulk or wholesale fuel purchases. Using your company’s dollars wisely on fuel and fleet management is vital to making sure your business runs at its best.
The good news is you can actually control these variable fuel costs. The solution? Lock in fuel prices by purchasing fixed future fuel contracts.
Let’s jump into some more detail and discover how fixed wholesale fuel prices save you money and protect for your fleet fueling budget.
- The Basics
First, you need an accurate measurement of the number of gallons per month your fleet requires. Get help from a regional fuel distributor in order to effectively gauge your fleet’s regular fuel use. To help establish your fleet’s fuel costs, commit to purchasing a specified number of gallons per month. That way, your company receives these gallons at a fixed price, and your business is no longer subject to fluctuating market demand.
- Who Can Help
Your oil and fuel distributor should not only help accurately measure your fuel needs, they should also assist with optimizing the efficiency of your operation. A good fuel distribution partner offers customized help, tailored to your business and its fuel needs. The partner you choose should also keep a close eye on the fuel market, using their industry experience to offer recommendations on the optimal time to buy fuel for your fleet.
Next, see if your fuel distributor provides a free analysis of your fuel products. Sometimes, the cheaper, lower quality products actually end up costing your business more over the long run when you consider maintenance and repair costs. Take advantage of your fuel distributor’s industry expertise and advice to improve your fleet performance, protect your equipment investment and save your business money.
Ask your fuel distribution partner to assist in designing customized fuel plans around your schedule and usage patterns. In addition, enlist the help of your fuel distributor in planning and managing your fuel needs for a larger, out-of-scope project. Lastly, be sure your fuel distribution partner has a strong presence in the region your business operates in. This helps ensure the lowest fixed costs possible for your business.
- The Benefits
Apart from the cost-effective help of a knowledgeable fuel distributor, the benefits of buying future fuel contracts for your fleet are tremendous.
Buying fuel at a fixed price helps you effectively manage your budget, no matter what happens in the fuel market, making one of the most frustrating variable costs for your company more predictable. Because future fuel contracts set your fuel costs for the foreseeable future, they help you effectively manage your budget and allow you to devote your time to doing what you do best.
With a future fuel contract in place, your business won’t be subject to variations or fluctuations of market demand. Even if the price of fuel dips below your fixed contract price for a short period of time, you have already established a price that works financially for your company. Once that fuel price rises, you immediately have an advantage over your competitors. And in today’s surging fuel market, that advantage is essential.
With these three steps in mind you can cut fuel costs for your company’s fleet significantly. Talk to an experienced fuel distribution partner like Richard Oil and Fuel for help managing your fuel costs and saving your company money.
For more information about how Richard Oil and Fuel helps you manage your fuel costs right, call 855.919.8444.